Jacobs Solutions Inc. Files Q1 2025 10-Q

TL;DR

Jacobs Solutions Inc. filed its Q1 2025 10-Q. Financials are in.

AI Summary

Jacobs Solutions Inc. filed its 10-Q for the period ending December 27, 2024. The filing covers financial information for the first quarter of fiscal year 2025. Key financial data and disclosures relevant to investors are included in this report.

Why It Matters

This filing provides investors with the latest financial performance and position of Jacobs Solutions Inc., crucial for understanding the company's health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Players & Entities

• JACOBS SOLUTIONS INC. (company) — Filer
• 20241227 (date) — Reporting period end date
• 20250204 (date) — Filing date
• 0000052988 (company) — Central Index Key

FAQ

Key Financial Figures

• $1 — hange on Which Registered Common Stock $1 par value J New York Stock Exchange I

Filing Documents

• jec-20241227.htm (10-Q) — 1191KB
• exhibit101-grantagreementx.htm (EX-10.1) — 59KB
• exhibit102-grantagreementx.htm (EX-10.2) — 56KB
• exhibit103-offerletterxven.htm (EX-10.3) — 32KB
• exhibit311q1fy2025.htm (EX-31.1) — 10KB
• exhibit312q1fy2025.htm (EX-31.2) — 9KB
• exhibit321q1fy2025.htm (EX-32.1) — 4KB
• exhibit322q1fy2025.htm (EX-32.2) — 4KB
• image_0.jpg (GRAPHIC) — 120KB
• image_02.jpg (GRAPHIC) — 120KB
• image_0a.jpg (GRAPHIC) — 6KB
• image_1a.jpg (GRAPHIC) — 22KB
• 0000052988-25-000016.txt ( ) — 8352KB
• jec-20241227.xsd (EX-101.SCH) — 60KB
• jec-20241227_cal.xml (EX-101.CAL) — 102KB
• jec-20241227_def.xml (EX-101.DEF) — 267KB
• jec-20241227_lab.xml (EX-101.LAB) — 725KB
• jec-20241227_pre.xml (EX-101.PRE) — 523KB
• jec-20241227_htm.xml (XML) — 1006KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 4 Consolidated Balance Sheets - Unaudited 5 Consolidated Statements of Earnings - Unaudited 7 Consolidated Statements of Comprehensive Income - Unaudited 8 Consolidated Statements of Stockholders' Equity - Unaudited 9 Consolidated Statements of Cash Flows - Unaudited 10

Notes to Consolidated Financial Statements - Unaudited

Notes to Consolidated Financial Statements - Unaudited 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 45

Controls and Procedures

Item 4. Controls and Procedures 56

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 47

Risk Factors

Item 1A. Risk Factors 47

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 48

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 48

Other Information

Item 5. Other Information 48

Exhibits

Item 6. Exhibits 49

SIGNATURES

SIGNATURES 50 Page 3

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Page 4 JACOBS SOLUTIONS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share information) December 27, 2024 September 27, 2024 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 1,299,657 $ 1,144,795 Receivables and contract assets 2,912,513 2,845,452 Prepaid expenses and other 136,855 155,865 Investment in equity securities 597,939 749,468 Total current assets 4,946,964 4,895,580 Property, Equipment and Improvements, net 293,148 315,630 Other Noncurrent Assets: Goodwill 4,683,356 4,788,181 Intangibles, net 795,285 874,894 Deferred income tax assets 207,980 195,406 Operating lease right-of-use assets 287,661 303,856 Miscellaneous 396,455 385,458 Total other noncurrent assets 6,370,737 6,547,795 $ 11,610,849 $ 11,759,005 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term debt $ 818,545 $ 875,760 Accounts payable 984,963 1,029,140 Accrued liabilities 1,012,218 1,087,764 Operating lease liability 114,293 119,988 Contract liabilities 1,013,076 967,089 Total current liabilities 3,943,095 4,079,741 Long-term debt 1,717,270 1,348,594 Liabilities relating to defined benefit pension and retirement plans 285,388 298,221 Deferred income tax liabilities 142,971 116,655 Long-term operating lease liability 383,966 407,826 Other deferred liabilities 116,600 120,483 Total other noncurrent liabilities 2,646,195 2,291,779 Commitments and Contingencies Redeemable Noncontrolling interests 794,593 820,182 Stockholders' Equity: Capital stock: Preferred stock, $ 1 par value, authorized - 1,000,000 shares; issued and outstanding - none — — Common stock, $ 1 par value, authorized - 240,000,000 shares; issued and outstanding - 122,912,389 shares and 124,253,511 shares as of December 27, 2024 and September 27, 2024, respectively 122,912 124,084 Additional paid-in capital 2,735,155 2,758,064 Retained earnings 2,179,509 2,366,769 Accumulated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation Unless the context otherwise requires: References herein to "Jacobs" are to Jacobs Solutions Inc. and its predecessors; References herein to the "Company", "we", "us" or "our" are to Jacobs Solutions Inc. and its consolidated subsidiaries; and References herein to the "Group" are to the combined economic interests and activities of the Company and the persons and entities holding noncontrolling interests in our consolidated subsidiaries. On August 29, 2022, Jacobs Engineering Group Inc. ("JEGI"), the predecessor to Jacobs Solutions Inc., implemented a holding company structure, which resulted in Jacobs Solutions Inc. becoming the parent company of, and successor issuer to, JEGI (the "Holding Company Reorganization"). For purposes of this report, references to Jacobs and the "Company", "we", "us" or "our" or our management or business at any point prior to the Holding Company Implementation Date refer to JEGI, or JEGI and its consolidated subsidiaries as the predecessor to Jacobs Solutions Inc. The accompanying consolidated financial statements and financial information included herein have been prepared pursuant to the interim period reporting requirements of Form 10-Q. Consequently, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted. Readers of this Quarterly Report on Form 10-Q should also read our consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 27, 2024 ("2024 Form 10-K"). In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of our consolidated financial statements as of December 27, 2024, and for t

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) could differ significantly from those estimates and assumptions. Our estimates, judgments and assumptions are evaluated periodically and adjusted accordingly. Please refer to Note 2- Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 2024 Form 10-K for a discussion of other significant estimates and assumptions affecting our consolidated financial statements. 3. Fair Value and Fair Value Measurements Certain amounts included in the accompanying consolidated financial statements are presented at fair value. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants as of the date fair value is determined (the "measurement date"). When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider only those assumptions we believe a typical market participant would consider when pricing an asset or liability. In measuring fair value, we use the following inputs in the order of priority indicated: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices in active markets included in Level 1, such as (i) quoted prices for similar assets or liabilities; (ii) quoted prices in markets that have insufficient volume or infrequent transactions (e.g., less active markets); and (iii) model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data for substantially the full term of the asset or liability. Level 3 - Unobservable inputs to the valuation methodology that are significant to the fair value measurement. Please refer to Note 2- Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 2024 Form 10-K for

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 4. New Accounting Pronouncements ASU 2024-03, Income Statement, (Subtopic 220-40): Reporting Comprehensive Income - Disaggregation of Income Statement Expenses, requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The amendments in this update also provide guidance on the disaggregation disclosure requirements for certain expense captions presented on the face of an entity's income statement and provide guidance on the disclosure of selling expenses. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. ASU 2024-03 will be effective for the Company in the fourth quarter of fiscal 2027. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. ASU 2023-09, Income Taxes, (Topic 740): Improvements to Income Tax Disclosures, provides qualitative and quantitative updates to the Company's effective income tax rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. ASU 2023-09 will be effective for the Company in the first quarter of fiscal 2026. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures and is implementing cha

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) The following table further disaggregates our revenue by geographic area for the three months ended December 27, 2024 and December 29, 2023 (in thousands): Three Months Ended December 27, 2024 December 29, 2023 Revenues: United States $ 1,812,830 $ 1,734,649 Europe 712,567 675,535 Canada 58,972 63,138 Asia 33,369 30,610 India 36,935 35,743 Australia and New Zealand 140,032 140,321 Middle East and Africa 138,251 130,231 Total $ 2,932,956 $ 2,810,227 Contract Liabilities Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. Revenue recognized for the three months ended December 27, 2024 that was previously included in the contract liability balance on September 27, 2024 was $ 410.7 million. Revenue recognized for the three months ended December 29, 2023 that was included in the contract liability balance on September 29, 2023 was $ 339.4 million. Remaining Performance Obligation The Company's remaining performance obligations as of December 27, 2024 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. The Company had approximately $ 14.6 billion in remaining performance obligations as of December 27, 2024. The Company expects to recognize approximately 49 % of its remaining performance obligations into revenue within the next twelve months and the remaining 51 % thereafter. The majority of the remaining performance obligations after the first twelve months are expected to be recognized over a four-year period. Although our remaining performance obligations reflect business volumes that are considered to be firm, normal business activities including scope adjustments, deferrals or cancellations may occur that impact volume or expected timing of their recognition. Remaining performance obligations are adjusted to reflect any known project cancellations, revisions to project scope and cost, foreign

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